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A new contribution to the 'Paris Metro Pricing' proposal

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Using the concept of the 'Paris Metro Pricing', we will show that, when the distribution of the capacity between sub-networks leads to any loss of technical effectiveness and when a traditional condition on the 'hazard rate' is checked, it is always optimal for the monopolist to subdivide his main network in as many sub-networks as there are different types of net surfers.
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Document Type: Research Article

Affiliations: G.R.E.Q.A.M, University of Aix-Marseille 2, France

Publication date: 2007-07-01

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